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Coats Group Acquires Spanish Yarn Maker Gotex
Thursday 09 June 2016

9 June 2016 - UK-based industrial thread manufacturer Coats Group plc has acquired Spanish industrial yarns and tapes company Gotex S.A., the group said.

The initial consideration is USD 28m, with a further payment of up to USD 4m after a two-year period, contingent on Gotex achieving certain performance targets.
 
Gotex, based near Barcelona, Spain, designs and manufactures high-tech industrial yarns and tapes that are used to protect, reinforce and insulate cables and pipes in the global telecommunications, energy and oil and gas sectors.

The company makes coated fibreglass yarns with a proprietary technology that enables manufacture at significantly higher speed than conventional technology.
 
Gotex's fibreglass technology complements Coats' aramid product range and will strengthen Coats' presence in fibre optics.

Coats will support Gotex in further expanding into high-growth markets by leveraging Coats' unrivalled geographic footprint, breadth of global customer relationships and strong corporate brand.
 
Payment will be satisfied from Coats operating cash flows and existing banking facilities.
 
The acquisition of Gotex constitutes a Class 2 transaction for the purposes of the UK Financial Conduct Authority's Listing Rules. Further details in respect of Gotex, including historic financials, are set out at the end of this announcement.
Details
Date Published: 09/06/2016
Target: Gotex S.A.
Country: Spain
Deal Size: 28m (USD)
Sector: Clothing/Textiles
Type: Corporate acquisition
Financing: Cash
Status: Closed
Vendor:
Buyer: Coats Group plc
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